PERISAI (0047) : Better times ahead for Perisai Petroleum
KUALA LUMPUR: CIMB Equities Research maintained its Add recommendation for Perisai Petroleum with an unchanged target price of RM2.20, which is 120% above its last traded price of RM1.
CIMB Research deemed the performance broadly in line as it expects a stronger earnings recovery in 4Q14 given the first full-quarter of contribution from jack-up Perisai Pacific 101 (PP101), mitigating the loss of income from the unemployment of mobile offshore production unit Rubicone and E3.
“We continue to value the stock based on CY16 P/E of 14.8x with an unchanged 30% discount to the P/E of the oil & gas big caps. We maintain our Add recommendation, with the full deployment of the assets as the potential re-rating catalyst,” it said.
Its 51%-owned floating production, storage and offloading (FPSO) vessel Perisai Kamelia, which started production in November 2013, chipped in as well.
“We expect a stronger earnings recovery in 4Q14, which will mark PP101's first full-quarter contribution. Perisai Kamelia will make its first full-year contribution this year. We expect Rubicone and E3 to be mobilised only in 2Q15 as management scouts for potential contracts in Southeast Asia,” it said.
The jack-up is servicing a three-year US$158mil Petronas Carigali contract, which translates into a daily charter rate (DCR) of US$144,292.
“Management has started negotiations with potential clients for PP102, which is scheduled for delivery in April/May 2015. PP103 is expected to join the fleet in June 2016.
“Given the strong demand for jack-ups in Southeast Asia as reflected by UMW-OG's high utilisation rate, Perisai's management should be able to secure a contract for PP102 before the asset is completed. We expect it to secure a minimum DCR of US$140,000-US$150,000 for a long-term contract,” it said.
http://www.thestar.com.my
KUALA LUMPUR: CIMB Equities Research maintained its Add recommendation for Perisai Petroleum with an unchanged target price of RM2.20, which is 120% above its last traded price of RM1.
CIMB Research deemed the performance broadly in line as it expects a stronger earnings recovery in 4Q14 given the first full-quarter of contribution from jack-up Perisai Pacific 101 (PP101), mitigating the loss of income from the unemployment of mobile offshore production unit Rubicone and E3.
“We continue to value the stock based on CY16 P/E of 14.8x with an unchanged 30% discount to the P/E of the oil & gas big caps. We maintain our Add recommendation, with the full deployment of the assets as the potential re-rating catalyst,” it said.
Its 51%-owned floating production, storage and offloading (FPSO) vessel Perisai Kamelia, which started production in November 2013, chipped in as well.
“We expect a stronger earnings recovery in 4Q14, which will mark PP101's first full-quarter contribution. Perisai Kamelia will make its first full-year contribution this year. We expect Rubicone and E3 to be mobilised only in 2Q15 as management scouts for potential contracts in Southeast Asia,” it said.
The jack-up is servicing a three-year US$158mil Petronas Carigali contract, which translates into a daily charter rate (DCR) of US$144,292.
“Management has started negotiations with potential clients for PP102, which is scheduled for delivery in April/May 2015. PP103 is expected to join the fleet in June 2016.
“Given the strong demand for jack-ups in Southeast Asia as reflected by UMW-OG's high utilisation rate, Perisai's management should be able to secure a contract for PP102 before the asset is completed. We expect it to secure a minimum DCR of US$140,000-US$150,000 for a long-term contract,” it said.
http://www.thestar.com.my
